Self-Construction Finance

Self-Construction Finance

The features you need to know:

Shariah compliant financing, based on Commodity Murabaha.

Down payment

The customer is not required to pay a down payment in cash. The land value will be considered as down payment.

Financing amount will be 90% of the land value + future construction value (for first house).

REDF Coverage

REDF will cover profit portion of the finance up to a maximum finance amount of SAR 500,000 through Madoom Program.

Takaful Life Insurance

Free Takaful life coverage against death or permanent disability, God forbid, without any medical test for finance up to SAR 2,500,000.

Property Insurance

Free Takaful Property coverage against fire and natural disasters such as floods, storms, earthquakes and resulting damages.

Debt Burden

Maximum debt burden ratio (DBR) is 65% out of the gross income.

Disbursement Schedule

Disbursement Schedule as follows: 15% upon commencement of construction, and subsequently 25%, 25%, 35% (provided that construction should be completed within of 36 months of financing disbursal).

Self-Construction Financing is a product of SAIB in collaboration with REDF, which allows customers to get financing against their owned residential land to fund the construction of their home. Customers can also avail the benefits offered by REDF under Madoom Program with this product. Customers can get financing from the Bank, which will be paid to them in tranches, based on the construction progress.

Payment period


Finance amount


Please make sure you have the following requirements:


  • For Saudi nationals only
  • Age of Applicant: Minimum age is 20 years and maximum age at maturity is 70 years
  • Applicant must be listed on the REDF’s and Ministry of Housing’s finance lists
  • Applicant must open an Account with SAIB and assign salary
  • If the amount of first tranche of 15% is higher than the land value, the lesser amount will be taken.
  • Employment: Retirees and employees of government, semi-government, military and private sectors (Bank’s approved list of companies)
  • Service period:
    For Government Sector: 1 month with current employer
    For Private Sector: 3 months with current employer


  • Filled finance application form
  • Copy of National ID
  • Introduction letter from customer’s employer
  • Construction plan
  • Copy of land title deed
  • Salary transfer letter
  • Account statement of the last 3 months showing last 3 salaries, verified from the previous bank
  • Copy of the “Work ID Card” specifying rank/position (to be taken post sighting of the original), if any


For more information and details, please contact our Flexx Call contact center at:


Standard SAIB loan administration fees. (1% of the finance amount up to a maximum SAR 5000) will apply.

The SAIB Self Construction Finance facility comes with a complimentary salary account with no minimum balance requirements. The account also offers free cheque-book, mada Debit Card from The Saudi Investment Bank and access to SAIB Flexx Click Internet Banking, Flexx Call contact center and SMS Banking facilities..


  • Approval in principle within 24 hours (subject to complete documentation)
  • Completion of final approval and all related procedures within 12 working days provided all required documents are submitted on time.

An example of information that will be obtained when applying for a product

Property evaluation (SAR) 500,000
LTV % 90
Type of term cost Fixed
APR % 7.40
Finance Tenor (Years) 15
Payment method Monthly deduction from customer's salary
Monthly Installment Amount (SAR) 4,037.18
Early settlement amount 1-2 Years: Total profit amount of the 1st two years After 2 years: profits of the three subsequent installments

*The Annual Percentage Rate (APR) may differ based on the amount and maturity period.

The calculator provides estimates only.
Your Age
20 Years
Property Price
Gross Income
Repayment term
First House
Down Payment
Monthly obligations
For exact figures please contact Flexx Call contact center at 800-124-8000
or visit your nearest SAIB Branch.
All personal financings are subject to credit approval.

Product Risks

To view the Home Finance product risks, click here


Am I required to open a salary account and transfer my salary to avail of this product?

Yes, salary transfer to SAIB is mandatory in order to obtain any of SAIB home finance products.

Do I need to mortgage my land to the Bank?

Yes, the land owned by you has to be mortgaged to the Bank in order to avail financing.

Is this finance available for expats, too?

No, this product is only for eligible Saudi nationals listed on the REDF’s and Ministry of Housing’s finance lists

If I am not listed on the REDF’s and Ministry of Housing’s finance lists, can I obtain this product?

No, only those who are listed in REDF’s and Ministry of Housing’s finance lists can get this product. If you are not eligible to get this product, you may apply for SAIB Murabaha Home Finance instead. To learn about Murabaha Home Finance, please click here.

Is this product Shariah-compliant?

Yes, this product is Sharia-compliant and based on Murabaha principle.

What is the maximum amount I can receive as subsidy from REDF and the Ministry of Housing under Madoom Program?

The maximum finance amount is SAR 7,000,000.

What is the maximum finance amount?

The maximum finance amount is SAR 5,000,000.

What is the administration fee amount?

1% of the finance amount up to SAR 5,000 (whichever is lower).

What is the minimum length of service?

The minimum service period:
For Government Sector: 1 month with current employer
For Private Sector: 3 months with current employer

Is joint finance eligible?

Joint finance is not eligible as per REDF’s criteria.

Can I make an early settlement of the finance amount with the Bank?

Yes, you can, provided that you meet the Bank’s terms and conditions (To learn more about these terms, please call us at 800 124 8000).

How can I apply for this finance?

Please click here or contact our Flexx Call contact center at 800 124 8000 .